...SAN FRANCISCO Calif. March 26 2007 /PRNewswire/ -- DiObexInc. a ...In a recently completed multi-center randomizedplacebo-controlled t...DIO-902 is one of two enantiomers contained within racemicketoconazol...

SAN FRANCISCO, Calif., March 26, 2007 /PRNewswire/ -- DiObex,
Inc., a privately- held biopharmaceutical company focused on the
development of therapeutics to treat metabolic diseases, today
announced positive phase 2a results for DIO- 902, a novel Cortisol
Synthesis Inhibitor.

In a recently completed multi-center, randomized,
placebo-controlled trial, patients with type 2 diabetes were
treated for two weeks to evaluate the safety, pharmacokinetics and
activity of three dose levels of DIO-902. After two weeks of
treatment, patients at all dose levels of DIO-902 showed
significant reductions in total and LDL-cholesterol as well as
trends toward an improvement in glycemic control as measured by
HbA1c, fructosamine and fasting blood glucose. Mean levels of
C-reactive protein, an inflammatory marker, were also significantly
reduced. In contrast, metabolic control in patients in the placebo
group remained stable or deteriorated slightly. These data lend
support to the concept that abnormalities in cortisol activity may
play an important role in the causation of type 2 diabetes and
metabolic syndrome, a cluster of co-morbidities commonly associated
with type 2 diabetes and insulin resistance. In the growing number
of patients with type 2 diabetes and metabolic syndrome,
co-morbidities such as hypertension and abnormal lipoprotein levels
dramatically increase the risk of cardiovascular disease.

DIO-902 is one of two enantiomers contained within racemic
ketoconazole, a marketed drug. Results of a separate
drug-interaction study, conducted in normal healthy volunteers, in
which Lipitor(R) (atorvastatin) was co- administered with DIO-902,
support the co-administration of DIO-902 with the most commonly
used doses of atorvastatin. This study also provided clinical
evidence of a significant differential effect of DIO-902 and
racemic ketoconazole on the metabolism of atorvastatin, thereby
reducing the potential
for toxicity. DIO-902 has been proven to be
both more effective and safer than the racemic mixture in
preclinical studies.

"We are delighted with the preliminary data that we have
generated to date, and at the prospect of taking the leading
Cortisol Synthesis Inhibitor to the next level of clinical
development. DIO-902 is clearly at the head of the pack in the
advancement of this exciting new drug category," commented Daniel
Green, DiObex President.

"DIO-902 offers the possibility of adding a new therapy to the
armamentarium which may have an impact on the underlying cause of
type 2 diabetes. The prospect of significantly reducing multiple
cardiac risk factors with a single drug is an extremely attractive
opportunity to enhance patient compliance and convenience while
reducing the need for polypharmacy," said Bernice Welles, M.D.,
Vice President of Development at DiObex.

DiObex, Inc. is a San Francisco-based biopharmaceutical company
founded to develop novel products for the treatment of metabolic
diseases. DiObex has two products preparing to enter Phase 2b
clinical development. DIO-901 is a formulation of Very Low Dose
Glucagon (VLD Glucagon) for reducing or preventing of insulin
induced hypoglycemia. DIO-901 has received Fast Track status from
the Food and Drug Administration. DIO-902 is a single enantiomer of
ketoconazole and is a novel cortisol synthesis inhibitor.
Abnormalities in cortisol activity may play an important role in
the development of metabolic syndrome, a constellation of
conditions that place people at high risk for type-2 diabetes and
cardiovascular disease. For more information, visit www.diobex.com.

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